Which of the following types of contracts involves payment to the seller for the seller's actual approved costs of completed work,plus a fee typically representing the seller's profit?
A) fixed-price contract
B) cost-reimbursable contract
C) equitable adjustment contract
D) direct cost contract

Question

Which of the following types of contracts involves payment to the seller for the seller's actual approved costs of completed work,plus a fee typically representing the seller's profit?​ 
A) fixed-price contract 
B) cost-reimbursable contract 
C) equitable adjustment contract 
D) direct cost contract

Quizplus · Accepted Answer

A cost-reimbursable contract involves payment to the seller for the actual approved costs of completed work, plus a fee representing the seller's profit. Fixed-price contracts have a set price, regardless of the seller's costs. Equitable adjustment contracts involve adjustments to existing contracts due to unforeseen circumstances, and direct cost contracts only cover direct costs, not fees or profit.

Which of the Following Types of Contracts Involves Payment to the Seller